Statkraft and E.ON have signed € 4.5 billion swap agreement

24.07.2008 09.03 | stock exchange information

(Stockholm, 24 July) Statkraft AS and E.ON AG have signed a final agreement that will position Statkraft as a European leader in renewable energy. Statkraft acquires renewable and flexible power generation assets and shares in E.ON AG, in exchange for shares in E.ON Sverige AB. The total value of the asset swap is € 4.5 billion.
Statkraft AS and E.ON AG have signed the final agreement to swap Statkraft's 44.6 per cent shares in E.ON Sverige AB and a Swedish hydropower plant in return for one third of E.ON Sverige's hydropower production (39 hydropower plants[1]), 5 Swedish district heating plants, 2 gas fired power plants and 11 hydropower plants in Germany, 1 hydropower plant in the United Kingdom, as well as shares in E.ON AG. In addition Statkraft receives a structured gas storage and an electricity supply contract.
The total value of the asset swap is € 4,495 million.  Statkraft increases its total generation capacity with approximately 2,500 MW, while about 220 employees will follow the assets and become new employees in Statkraft. The transfer of ownership of the assets will take place at the end of the year subject to the necessary approvals of the antitrust authorities.
"Through this agreement, Statkraft will strengthen its position as a flexible and environment-friendly energy provider in the Nordic and Continental markets. The hydropower plant in Wales will represent a new foothold for Statkraft in the UK market," says Bård Mikkelsen, CEO of Statkraft.
Statkraft becomes one of the four largest electricity producers in Sweden. Increased flexible power generation in Germany and the UK strengthens the company's position as a significant player in Northern Europe and gives Statkraft a solid platform for future growth in these core markets.
The agreement sees the progression of two experienced European competitors in the Nordic market. This supports EU's market liberalisation and creates more competition, benefiting customers and energy supply security.
E.ON Sverige AB is today owned 55.4 per cent[2] by E.ON AG and 44.6 per cent by Statkraft AS. The transaction will release a high value creation for Statkraft's investment in E.ON Sverige AB, and at the same time transfer this value into 100 per cent ownership in strategic assets in core markets. Furthermore, part of the value will be transferred into E.ON AG shares, representing approximately EUR 2.18 billion.

[1] Statkraft receives 40 Swedish hydropower plants from E.ON. E.ON receives one Swedish hydropower plant from Statkraft. Statkraft's net gain is 39 hydropower plants.
[2] Minority shareholders of approx. 0.05 per cent remaining.
The Statkraft Group is a leading player in Europe in renewable energy. The Group develops and generates hydropower, wind power, gas power, solar power and district heating and is a major player on the European energy exchanges. Through ownership in other companies we deliver electricity and heating to around 600,000 customers in Norway. In 2007, Statkraft earned a profit of NOK 6.6 billion, and has over 2300 employees in 10 countries. The world needs clean energy. That is what Statkraft is working on - every single day.
For further information, please contact:
Ragnvald Nærø, EVP Communication and CR, Statkraft AS
tel.: +47 24 06 71 00 / +47 900 80 303
Knut Fjerdingstad, Media Spokesperson, Statkraft AS
tel.: +47 24 06 71 61 / +47 901 86310
Yngve Frøshaug, VP Investor Relations, Statkraft AS
tel.: +47 24 06 78 76 / +47 90 02 30 21